Need for the study of MCX Comdex
Theoretically, the Spot and the Futures prices of the assets are related and that a perfect
correlation is expected, such that neither market leads the other, but is not so in real life due to
the presence of imperfect information dissemination. An attempt is made to study the temporal
relationship between the Spot and the Futures prices of the Commodity Market by analyzing the
data of the Comdex.
Sanjay Sehgal, Namita Rajput, Rajeev Kumar Dua (2012) studied the price discovery
relationship for Agricultural Commodities in Indian markets. They found an efficient price
discovery process in place. They recommended the strengthening of the market regulatory
framework. An emphasis on the autonomy of Forwards Market Commission (FMC) was made.
Their study also revealed the need for well developed warehousing and market linkages.
